A storm is brewing in Nigeria’s Liquefied Petroleum Gas (LPG) market as Alhaji Aliko Dangote, President of the Dangote Group, unveils plans to significantly reduce the price of cooking gas.
Dangote also warned that if current distributors resist the price drop, his company would begin direct sales to consumers.
The announcement, made during a recent tour of the Dangote Refinery in Lekki, has sparked protests from operators in the sector. Many fear the move could lead to a monopoly, with smaller players edged out of the market.
Speaking to members of the Lagos Business School CGEO Africa, Dangote noted that the current price of cooking gas is unaffordable for the average Nigerian.
He disclosed that the refinery is currently producing about 2,000 tonnes of LPG daily and is scaling up to 22,000 tonnes for nationwide distribution.
“Cooking gas is expensive. We’re working to make it cheaper. If distributors won’t reduce prices, we’ll sell directly to consumers so they can shift from firewood and kerosene to LPG,” Dangote said.
Currently, the retail price of cooking gas ranges from ₦1,000 to ₦1,300 per kilogram. Dangote promised that his company’s entry would help bring prices down significantly.
However, several industry stakeholders are not convinced.
Godwin Okoduwa, former Chairman of the LPG and Natural Gas Downstream Group at the Lagos Chamber of Commerce and Industry, described the move as monopolistic.
He argued that the growth of the LPG sector — from 70,000 metric tonnes in 2007 to over 1.3 million tonnes in 2022 — was the result of years of collaborative effort among stakeholders, including the federal government and the Nigeria LNG.
“This market grew through cooperation, not monopoly. Dangote’s approach could threaten existing players who’ve invested heavily in infrastructure and market development,” Okoduwa stated.
He urged Dangote to collaborate rather than dominate, noting that Nigeria’s LPG consumption still lags behind that of other African countries. “We’re doing 5–6kg per capita. Morocco and Tunisia are in double digits. We should be expanding the market, not shrinking it with monopolistic practices.”
Okoduwa added that if Dangote is genuinely concerned about affordability and accessibility, he should focus on developing LPG infrastructure in underserved regions like the Northeast.
Bassey Essien, Executive Secretary/CEO of the Nigerian Association of Liquefied Petroleum Gas Marketers, also expressed skepticism.
He questioned the feasibility of Dangote selling gas directly to end users or drastically reducing prices.
“It’s not realistic. Look at petrol. Has the refinery been able to sell PMS directly to consumers at low prices? No. This gas issue won’t be any different,” Essien said.
As Dangote prepares to launch the direct distribution of petrol, diesel, aviation fuel, and LPG in August — supported by a fleet of 4,000 CNG-powered buses — the tension between ambition and market balance appears set to intensify.
